This week we discussed different types of strategy for the international firm which included a discussion
on various entry modes. Select any company of your choice and provide a short paper 4 to 5 pages
which details their strategy and what entry mode they use to gain access to foreign markets. A great
guide for completing this assignment is Table 13.1, page 381 of your book.
Firms use four basic strategies in global markets:
Global standardization
Localization
Transnational
International
ABLE 13.1 Advantages and Disadvantages of Entry Modes
Entry Mode Advantages Disadvantages Exporting Ability to realize location and experience curve economies High transport costs
Trade barriers
Problems with local marketing agents Turnkey contracts Ability to earn returns from process technology skills in countries where FDI is restricted Creating efficient competitors
Lack of longterm market presence Licensing Low development costs and risks Lack of control over technology
Inability to realize location and experience curve economies
Inability to engage in global strategic coordination Franchising Low development costs and risks Lack of control over quality
Inability to engage in global strategic coordination Joint ventures Access to local partner’s knowledge
Sharing development costs and risks
Politically acceptable Lack of control over technology
Inability to engage in global strategic coordination
Inability to realize location and experience economies Wholly owned subsidiaries Protection of technology
Ability to engage in global strategic coordination
Ability to realize location and experience economies High costs and risks
